Popping back in here before I forget ... I don't know how it'd work either, but adding an (optional) RNG element could be fun? Something like the Fairy Tale Meme to determine a 'role' and add a 'genre' (Horror/Romance/Mystery/etc) and characters are obliged to act it out accordingly (and will find themselves temporarily transformed during the duration, etc).

Visually, I'm also really envisioning it being like the Hundred Acre Wood segment of Kingdom Hearts.